Piramal Healthcare has entered into an agreement with Cipla to purchase contraceptive pill, i-pill, for Rs 95 crore. According to ORG IMS, the i-pill brand had registered sales of Rs 31 crore during the last one year. The acquisition of i-pill is supposed to strengthen Piramal?s over-the-counter (OTC) portfolio?which has consumer brands such as Lacto Calamine skin care range, supractiv complete, saridon and polycrol antacid.The OTC market in India is estimated to be around $ 1.8 billion and is?growing at 18% annually.
Ajay Piramal, chairman, Piramal Healthcare, said, ?the OTC segment was?still in its nascent stages in India and presents us with high growth opportunities.?In particular, the emergency contraceptive pill segment, which is approximately Rs 100 crore, has grown?by 250% in the last two years.?
Amar Lulla, joint managing director, Cipla Ltd.?said, ?In 2007, we created i-pill which is currently India?s no. 1 OTC emergency?contraceptive brand. Our decision to divest the brand is driven by our current domestic product portfolio focused on prescription drugs. We are pleased that Piramal Healthcare,?another Indian healthcare company, with a strong OTC portfolio has bought the brand?and are confident that they will successfully accelerate the future growth of this brand.?
In January, Drug Controller General of India (DCGI) had ordered companies manufacturing ?morning-after-pills? like i-pill and Unwanted 72 to withdraw advertisements about the products with immediate effect. The DCGI asked companies to stop their marketting as permission was never taken from the government for advertising these pills in the first place.